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<br />1 `IFORVCO`'EN.atiaS B moue-. and Lerlde ,c:i`- ran-,anc:agreeasioll_,ws:
<br />1. Payment of Priedpai and Interest Prepayment and Late Charges. Borrower snail promptly pay when due
<br />the principal of and interest on the debt evidenced by the Note and any prepayment and late charges due under the \ore.
<br />2. Funds for Tares and Iasoranee. Subject to applicable law or to a wnnen waiver by Lender, Borrower shall pay
<br />to Lender on the day masthly payments are due under the Note, until the Note is paid in full, a sum ( "Funds') equal to
<br />one - twelfth of (a) yearly taxes and assessments which may attain priority over this Security Instrument: (b) yearly
<br />leasehold payments or ground rents on the Property, if any, ('c) yeariy hazard insurance premiums: and (d) yearly)
<br />mortgage insurance premiums, if any. Theses items are called "escrow- items." Lender may estimate the Funds due on the
<br />bate of current data and reasonable estimates of future escrow items.
<br />The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a federal or
<br />state agent) (including Lander if lender is such an institution)- L.ende r . shall apply the Funds to pay the escrow- items.
<br />Lander may not charge for holding and applying the Funds, analyzing the account or verifying the escrow items, unless
<br />Lander pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and
<br />Lender may agree in writing that interest shall be paid on the Funds. Uniess an agreement is made or applicable law
<br />requires interest to be paid, Leader shall not be required to pay Borrower any interest or eamingss on the Funds. Lender
<br />shall give to Borrower, without charge. an annualAccounting ofthe Funds showing credits and debits to the Funds and the
<br />purpose for which each debit to the Funds was trade. The Funds are pledged as additional security for the sums secured by
<br />this Searnty Instrument.
<br />If the amount of the Funds held by Lender, together with the future monthly payments of Funds payable pnor to
<br />the due dates of the escrow nerns. shall exceed the amount required to pay the escrow items when due. the excess shall be.
<br />at Borrowers option. either promptly repaid to Borrower or credited to Borrower or monthly payments of Funds. If the
<br />amount of the Funds held'm Lender is nor sufficient to pay the escrow items when due. Borrower steal: pay to Lender any
<br />amount nexssan' to make up the deficiency in one or more payments as required by Lender.
<br />t secured by this Secunn Instrument. Lender shall promptly refund to Borrower
<br />Upon payment in full of all sums
<br />any Funds held by Lender. If under paragraph 19 the Property is sold or acquired by Lender, Lender shall apply, no later
<br />than immediately prior tc the We of the Property or its acquisition. by Lender, any Funds held by Lender at the time of
<br />application as a credit against the sums secured by this Security Instrument..
<br />3. Application of Payments. Uaiess applicable law provides otherwise, all payments re=ved by Lender under
<br />paragraphs, l and 2 shall be applied: first, to late charges due under the Note, second, to prepayment charges due under the
<br />Nam third, to amounts payable under paragraph 2. fourth. to interest due: and last, to principal due.
<br />4. (bargm Liens. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable to the
<br />Property which may attain priority over this Security Instrument, and leasehold payments or ground rents, if any.
<br />Borrower shall pay these obligations in the manner provided in paragraph 2, or if not paid in that manna, Borrower shall
<br />pay them on time directly to the person owed payment. Borrower shall prompth• furnish to Lender all notices of amounts
<br />to be paid under this paragraph. If Borrower males these payments directly, Borrower shall promptly furnish to Lender
<br />receipts evidencing the payments.
<br />Borrower shall promptly discharge any her. which has priority over this Security Instrument unless Borrower: (a)
<br />agrees m w•ritmg to the payment of the obligation secured by the lien in a manner acceptable to Lender: (b) contests in good
<br />faith the lien by, or defends against enforcement of tine lien in. legal proceedings which in the Lender's opinion operate to
<br />prevent the enforcement of the lien or forfeiture of any pan of the Proper•: or (c) secures from the holder of the lien an
<br />agreement satisfactory to Lender subordinating .:e lien to this Security Instrument. If Lender detummes that any pan of
<br />the Property is subject to a lien which may attain priority over this Security Instrument, Lender may give Borrower a
<br />notice identifying the liar. Borrower shall satisfy the lien or take one or more of the actions set forth above within 10 days
<br />of the giving of notices.
<br />3. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property
<br />insured against ions by fire, hazards included within the term "extended coverage" and any other hazards for which Lender
<br />requires insurance. 'iris insurance shall b: maintained in the amounts and for the periods that Lender requires. T'ne
<br />insurance ramer providing the insurance shall be chosen by Borrower sub)ec: to Lender's approval which shall not be
<br />unreasonabiy withheld.
<br />A11 insurance policies and renewals. shall be acceptable to Lender and shall include a standard mortgage clause.
<br />Lender shall have the right to hold the policies and renewals. If Lender requires• Borrower shall promptly give to Lender
<br />all receipts of paid premiums and renewal notices. In the event of loss. Borrower shall give prompt notice to the insurance
<br />carver and Lender. Lander may make proof of loss if not made promptly b) Borrower.
<br />Unless Lander and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair
<br />of the Property damaged, if the restoration or repair is economically feasible and Lender's security is not lessened. If the
<br />restoration or repair is rot economically feasible or Lender's security would be lessened, the insurancx proceeds shall be
<br />applied to the sums secured by this Security Instrument, whether or not then due, with any excess paid to Borrower. If
<br />Borrower abandons the Property. or does not answer within 3a da-.% a notice from Lender that the insurance carrier has
<br />offered to settle a claim, than Lender toy collect the insurance proceeds. Lender may use the proceeds to repair or restore
<br />the Property or to pay sums secured by this Security Instruman, whether or not tines due. The 30-da) period will begin
<br />when the notice is given.
<br />Unless Lander and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or
<br />postpone the due date of the monthly payments referred to in paragraphs i and 2 or change the amount of the payments. If
<br />under paragraph 19 the Property is acquired by lender, Borrower's right to any insurance policies and proceeds resulting
<br />from damage to the Property prior to the acquisition shall pass to Lender to the extent of the sums secured by this Security
<br />Instrument immediately prior to the acquisition.
<br />6. Preservation and 1Kaintemnex of Property; Lei "Wds. Borrower shall not destroy, damage or subsantiall)
<br />change the Property, allow the Property to deteriorate or commit waste. If this Secunty Instrument is on a iasehold.
<br />Borrower shall comply with the provisions of the lease, and if Borrower acquires fee title to the Property, the leasehold and
<br />fee title shall not merge unless Lender agrees to the merger in writing.
<br />7. ProlKties of Larder's Ruts in tie Prop". -, Mortgage Insurance. I£ Borrower fails to perform the
<br />covenants and agreements contained in this Setunty Instrument, or there is a legal proceeding that may significanti% affect
<br />Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or
<br />tepiations), than Lander may do and pay for whatever is necessary to protect the value of the Property and Lender's rights
<br />m the Property. Larder's actions may include paying any sums secured by a lien which has priority over this Security
<br />Instrument, appearing in court, pay" reasonable attorneys' fees and entering on the Property ro make repairs. Although
<br />Leader may take action under this paragraph ". Lender does not have to do so.
<br />Any amounts disbursed by Lender under the paragraph " shall become additional debt of Borrows secured by this
<br />Security Instrument nt Unless Borrower and Lender agree to other termtsof paymew. these amounts snal: bees: ante -est from
<br />the date of dwourwinew a= she Nott rate and shall tie payable. witr interest urK r: norsce fror , Lender tc B ^c*wc-
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